New York Laws
Part 5 - Collection of Documentary Drafts
4-501 - Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor.


Presentment and to Notify Customer of Dishonor.

A bank which takes a documentary draft for collection must present or
send the draft and accompanying documents for presentment and upon
learning that the draft has not been paid or accepted in due course must
seasonably notify its customer of such fact even though it may have
discounted or bought the draft or extended credit available for
withdrawal as of right.